Filed under: Deals, Microsoft (MSFT), Yahoo! (YHOO), Electronic Arts (ERTS), Activision Inc (ATVI)
I decided to sell my position in Take-Two Interactive (NASDAQ: TTWO) today. I obviously wanted to take advantage of the nice jump in the share price following the buzz over the all-cash offer from Electronic Arts (NASDAQ: ERTS). As I write this, Take-Two’s stock is up 52% from its previous closing value, and up somewhere around 29% from the price I paid near the end of 2007 for the stubs that I just dumped.
My reasoning is easy. I purchased Take-Two ahead of the expected stock appreciation that would occur in the months preceding the Grand Theft Auto IV release in April. Also, I felt that the company was improving and moving beyond the problems it experienced with corporate governance issues in the current past. Well, with the significant move in the value of my shares in a relatively short period of time, and with the uncertainty regarding this deal, I decided to take the money and see if the funds might be superior invested elsewhere. I don’t necessarily want to be in the middle of a takeover battle; I’m sure shareholders of Microsoft (NASDAQ: MSFT) and Yahoo! (NASDAQ: YHOO) aren’t the most content investors on earth right now.
Do I think Take-Two might be able to negotiate a better offer? Yes, I do. But I own Activision (NASDAQ: ATVI), and I’m satisfied with playing the videogame sector via its shares for now. And I can always look at Take-Two after things settle. I believe selling Take-Two was the right decision for my portfolio.
Disclosure: I sold my entire position of Take-Two shortly before writing this, and I own shares in Activision.
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